Answer:
$100,000
Explanation:
According to the internal revenue service ''<u>In most situations, the basis of an asset is its cost to you.</u> <u>The cost is the amount you pay for it in cash</u>, debt obligations, and other property or services. Cost includes sales tax and other <u>expenses connected with the purchase</u>.''
Therefore Sebastian's basis in these two assets is unconnected with the fair market value of the assets but with the cost.
Purchased Equipment is always recorded at its acquisition cost or its net book value, that is after deducting the accumulated depreciation
. In the scenario we have no depreciation figures, hence the basis is the cost of $100,000
Answer:
Option (B) is correct.
Explanation:
Open market operations is a monetary policy instrument that is used by the Federal reserve for controlling the money supply in an economy. If there is a need to decrease the money supply in an economy then fed sells the government securities to the public and on the other hand if there is a need to increase the money supply in an economy then fed purchases the government securities from the public.
So, here the expansionary policy is to purchases the treasury bills from the public.
Answer: Market Efficiency
Explanation:
It is important that the Government as a regulator should not get involved in acts that would protect individual institutions from failure because that would defeat the whole purpose of a competitive industry.
If a government is known to directly involve itself in the protection of institutions from failure, efficiency in institutions may become low because of the lack of fear of failure as companies believe that should they run into bad times, they will simply be bailed out by the government so there is no need for them to maintain a competitive edge.
This can lead to a situation where we have companies performing sub optimally in an economy which can only act to reduce the Economic growth of a country.
Government institutions usually have such backing and in a lot of countries are prone to failure. Look at the Bamangwato Concessions Limited (BCL) mine in Botswana for instance that kept failing and refusing to improve it's efficiency because they could always run back to the government for a bailout. Their position eventually became so untenable that bankruptcy was the only option.
Answer:
d. All of the above
Explanation:
Government regulations are the rules that players in an industry must abide by. In a free-market economy like the US, the government's main role is to regulate economic activities. The government enforces regulation through its various agencies.
The areas of regulations include but are not limited to
- Protecting consumers from undue exploitation by businesses,
- Encourage fair business competition
- Promote a healthy, safe work environment for employees
- Promote and sustain a clean environment
- Private data protection and security
Answer:
Explanation:
Had to use microsoft word in other to be able to arrange the solution properly. And i hope it helps you. Thank you
